Supercomputers vs Supercore Inflation

The stock market appeared calm ahead of tomorrow's November CPI report, which is likely to show that supercore inflation (i.e., CPI services less shelter) remains stuck around 4.5% (chart).

However, there was plenty of action just below the surface of the stock market's calm. Oracle dropped 6.7% on disappointing earnings results. Google rallied 5.3% on a new state-of-the-art chip "Willow," which promises to be a quantum leap in quantum computing. It reportedly outpaces today's supercomputers by several orders of magnitude. To us, this is the latest evolution of the Digital Revolution, which is all about data processing, i.e., processing more and more data, faster and faster. AI is likewise an evolutionary technology in the Digital Revolution.